Thursday, March 18, 2004

Thursday Close

S&P 500 1,122.32 -.13%
NASDAQ 1,962.44 -.72%

Leading Sectors
Oil Service +.86%
Energy +.81%
Insurance +.57%

Lagging Sectors
Semis -1.32%
Restaurants -1.79%
Airlines -2.35%

Crude Oil 37.80 -.34%
Natural Gas 5.59 -.71%
Gold 411.90 +.15%
Base Metals 112.72 +.56%
U.S. Dollar 87.64 -1.15%
10-Yr. Long-Bond Yield 3.75% +1.06%
VIX 18.53 +2.32%
Put/Call .82 +2.50%
NYSE Arms 1.05 +57.62%

After-hours Movers
ADBE +7.2% after significantly beating 1Q estimates and boosting 2Q estimates.
PSRC -11.0% after meeting 3Q estimates and lowering 4Q guidance.

TIBX price target raised to $12 at Lazard Freres. KBH price target raised to $90 at Friedman Billings. ABN Amro says the U.S. dollar will strengthen against the euro in the next 12 months as investment flows into the U.S. improve. Goldman reiterates Outperform on MDT, $54 target. Merrill Lynch named PXD Focus 1 stock.

After-hours News
U.S. stocks finished slightly lower after a strong afternoon rally on rumors that a "high value" al-Qaeda target was cornered on the Pakistani/Afghan border. After the close, United Airlines' parent UAL said it plans to postpone completion of its bankruptcy reorganization until later this summer, Bloomberg reported. UN Secretary-General Annan said he will send a political team to Iraq as early as next week to help form a transitional government by June 30.

BOTTOM LINE: The Portfolio was down today mainly from weakness in my technology long positions. However, I kept the positions in tact as the mornings lows held and the afternoon rally was strong. It wasn't surprising that rumors surfaced that an al-Qaeda leader was cornered, but the market's very positive reaction to those rumors was surprising. It seems as though the market is developing the type of underlying strength needed to form a bottom. I would expect a positive day tomorrow on better performance from tech as Adobe reported a very good quarter and guidance after the close. The Portfolio is 100% net long.

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